What is a main goal of the Federal Reserve in its monetary policy? A) lowering taxes B) to curb recessions C) increasing government spending D) regulation of the stock market
Social Studies · High School · Tue Nov 03 2020
Answered on
B) To curb recessions
One of the main goals of the Federal Reserve in its monetary policy is to stabilize the economy and mitigate the impact of economic downturns, including recessions. The Federal Reserve aims to achieve maximum sustainable employment, stable prices, and moderate long-term interest rates. In times of economic recession, the Federal Reserve may use various monetary tools to stimulate economic activity, such as lowering interest rates to encourage borrowing and spending. By doing so, it seeks to support job creation, maintain price stability, and promote overall economic growth.